The group now employs over 430 people. It has centralized its operations at the headquarter office building in Cairo and has developed its branch network to include offices in Heliopolis, Giza, Alexandria and Port Said coupled with an expanding presence regionally. The Asset Management division has established an office in the UK to assist in managing its Middle East and Emerging Africa Fund and further develop its activities regionally.
EFG-Hermes presently has leading market positions in four key business areas:
Securities Brokerage: With a market share equivalent to over 15% of total market turnover in 2000, the securities brokerage division comprises separate sales teams catering to institutional and private clients, coupled with a dedicated team servicing Gulf clients. The brokerage arm is the beneficiary of a research team that is internationally recognized as predominant in Egypt. With the aim of trading in other regional markets in the near future the research division has provided coverage of various neighboring countries.
Investment Banking: EFG-Hermes has established itself as the leading investment bank in Egypt, the Middle East and North Africa region by successfully advising on numerous capital raising (equity and debt) and mergers & acquisition transactions. Landmark deals include acting as Global Coordinator for the largest international equity offering in Egypt′s history (Orascom Telecom, US$ 320 million), advising on the largest syndicated loan arranged by Egyptian banks (Misrofone, LE 2.4 billion), and acting as Financial Advisor on Egypt′s largest cross-border M&A (Cimpor acquisition of Amryah Cement, US$ 482 million), as well as on the largest acquisition conducted by an Egyptian company (Orascom Telecom acquisition of Telecel, US$ 413 million).
Asset Management: Including 11 domestic Mutual Funds, Pension Funds and a range of Offshore Funds, Asset Management also offers innovative equity linked products and - recently - a Middle East and Emerging Africa fund. Portfolio Management is also offered to private clients through a dedicated management team.
Private Equity: After an outstanding success in the co-management of two prominent Egyptian Private Equity funds, namely Horus Fund and Arab Investment Company with IRR′s exceeding 50-60% since their inception in 1997, EFG-Hermes realized its unique position in the private equity market. In 1999, the wholly owned subsidiary EFG-Hermes Private Equity was established. We estimate our market share of Private Equity Transactions performed in the Egyptian market to be well over 50% of all deals concluded in 2000. EFG-Hermes Private Equity has established two funds in 2000.
First: The Jordan Hi- Tech Venture Fund limited is a USD 15 million Isle of Man Fund of closed-end nature and a life of 7 years. It was established with the purpose of investing in the IT sector in Jordan.
Second: Middle East Technology Fund, a US$ 25 million Isle of Man Closed end fund with a life of 5 years and established to invest in the TMT sector in the Middle East including Turkey.
In the recent past the firm has also managed to develop from a local to a regional player in a majority of its activities to become one of the leading firms in the Arab World.
The Egyptian Financial Group (EFG) was established in 1980 as the first investment banking firm in Egypt. For more than 15 years it offered its clients a variety of services and was involved in a large number of privatization studies for the Egyptian government. EFG moved into brokerage in 1993 and Asset management in 1994. EFG established the first equity index in Egypt.
In 1994, Hermes was established as another leading financial services company based on the international experience gained by its founders in the U.S.A . and on a young energetic team. Hermes showed great success in securities brokerage and fund management.
When the local market had reached a point where large financial institutions were needed with real financial muscles and a wide network of local and international clients, the two firms decided to merge. In 1996, EFG-Hermes was born out of the highly publicized merger between the Egyptian Financial Group ( EFG) and Hermes Financial.
(last updated: 05-January-2003)
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